Zach Pandl, head of research at Grayscale, noted that Strategy's disclosure of selling 32 Bitcoin on June 1 triggered a fresh wave of market volatility. Although the sale was negligible compared to its holdings of approximately 840,000 BTC (worth about $55 billion), the rare reduction in its massive stash jolted market sentiment.
STRC Preferred Stock Pressure Could Lead to Forced Selling
Pandl emphasized that more attention should be paid to the performance of Strategy’s variable-rate preferred stock STRC (Stretch). Designed with a target price around $100, it currently offers a dividend yield of 11.5%. When the STRC share price dips below $100, it signals that investors demand higher returns, potentially forcing the company to increase its dividend payouts to stay attractive. This would inevitably intensify cash flow pressure and could compel Strategy to sell more Bitcoin assets to raise funds, thereby exerting additional downward pressure on BTC spot prices. A prolonged sub-$100 level could create a vicious cycle of forced selling that weighs on the broader Bitcoin market.
Leveraged Reserve Model Faces Hurdles, Long-Term Outlook Positive
Strategy’s leveraged Bitcoin accumulation strategy is under severe strain. With the current depressed share prices of both STRC and MSTR common stock — a reflection of investor caution — the company’s ability to continue large-scale Bitcoin purchases via market financing is likely significantly constrained. If funding conditions worsen, its enormous Bitcoin reserve may struggle to grow further and could even face the risk of being partially liquidated to manage cash flow.
Nevertheless, Pandl offered a constructive long-term perspective. He believes that as Bitcoin holdings gradually migrate from highly leveraged digital asset reserve companies to more diversified corporate balance sheets, overall market resilience will improve and the long-term value foundation of Bitcoin will strengthen.
He predicts Bitcoin could regain upward momentum in the coming months, though in the near term its performance may lag behind crypto sectors that more directly benefit from regulatory clarity.